23rd December 2001 - Dow Jones Industrial
Average ( DJIA ) Outlook
Taking a number of time frames into account, there is a clustering
around the 9th of January and the 10th of January with
a couple of major time frames coming out on this date as well as 182
days ( Gann Emblem ) from the 11th July minor low. |
23rd December 2001 - Standard and Poors
500 ( S&P 500 ) Outlook
Taking a number of larger time frames into account, there is a clustering
around the 9th of January and the 11th of January as
well as the 182 days ( Gann Emblem ) from the 11th July minor low.
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23rd December 2001 - NASDAQ Outlook
Taking a number of larger time frames into account, there is a clustering
around the 21st, 22nd and 23rd of January. This date area also
applies to the other markets as it represents 100% of the previous
wave down. Although there are time frames also pointing to this area,
it should be noted that Markets very rarely 'mirror' in this fashion,
so faith in this date is currently low. Market action as the Date
approaches will be a better indicator. I leave it to the reader to
look into this in their own time. |
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Summary for Week Ending 28th Dec 2001
DJIA See
Chart
*** The January effect appears to have started,
although with the usual vigor that one would expect to see. The rally since
the the Sept 21st low has been quite swift, and perhaps will dampen the
ability for further gains of a similar magnitude without a healthy correct
taking place first. Generally all markets this week have been quiet, which
is to be expected with the season, and New Years in the coming week to round
off the Holiday season, and let the markets get focused on the coming year
ahead.
This weeks chart shows the Parallel lines mentioned in the past few weeks
finally loose their influence, as well as the Gann Fan ( scale set to 10
) calling the recent top, which provided resistance to the rally that occurred
this week. Also marked up is the 851 Range Square which can be expected
to provide some resistance to upwards movements.
S&P 500 See
Chart
*** This week has seen the S&P in the doldrums
without any real action to speak of. As pointed out last week, this was
to be expected. The forward movement , which was a continuation of the previous
week has failed to make new highs this week, and as highlighted in this
weeks chart, is approaching the upper line on a major Parallel Channel which
extends from the Sept 2000 high. Also highlighted this week is the Gann
Fan ( scale set to 1 ) calling the recent top. There is no COT for this
coming week, as we await early January for the expected annual market rally.
NASDAQ See
Chart
*** Last weeks action has yet to confirm the
continuation of the upward trend, with the market yet to break the highs
of the previous week. Any failure to make these new highs should be considered
as bad news for the short term as a second lower high is a very bearish
indicator.
This week chart shows The Gann Fan ( scale set to 1 ) with the market topping
on the extreme 9:1 line, showing just how fast this has recovered from the
Sept lows. Also highlighted is the 2:1 Gann Fan line from the March 2000
high showing how efficiently the market jumped this line and is now running
outside it. I would anticipate that in the short term, the upward movement
would continue, pushed along mostly by the January effect and rises in other
markets, however a movement this far this fast cannot be sustained forever.
The correction, when it comes, should be a reflection of the rise, Fast. |
